The benchmark S&P 500 is now 1.39%, dragging an index of 10% or more below the February peak.
The US stock market has taken another fall after President Donald Trump’s threat to impose sudden tariffs on wine and other alcoholic products from the European Union.
The Benchmark S&P 500 fell 1.39% on Thursday, dragging the index into a correction. Wall Street language has dropped by more than 10% since its peak.
The correction is not uncommon in the US stock market. The US stock market has consistently recovered from losses surrounding its history, but in the short term it can be awkward for investors.
The S&P 500 last entered the Correctional Territories in October 2023. At that time, the index slid 10.3% from its July peak.
Dow Jones’ industrial average and high-tech NASDAQ composite also recorded a sharp decline, down 1.30% and 1.96%, respectively.
The latest losses mean that U.S. stocks have lost more than $5 trillion in market value since their peak in February.
Trump’s announcement of a deadly trade impasse is a volatile market, with investors struggling to measure whether his tariffs remain here or a negotiation tactic to draw concessions.
“The main difference between the trade wars based on Trump 1.0 and Trump 2.0 is the period,” says Kamiya’s letter, a financial newsletter founded by Adam God Bessi, in X.
“In his first term, Trump’s tariffs were seen as a more stance tactic. This time, the market has been increasing the price of tariffs with more trading partners. This is a significant change.”
In his latest trade salvo on Thursday, Trump threatened to slap 200% tariffs on EU wine, champagne and other alcoholic products.
The Trump threat comes after the block announced plans to impose a 50% tariff on US bourbon whiskey from April 1 in response to US steel and aluminum obligations that came into effect Wednesday.
On Tuesday, Trump retreated from the threat of imposing a 50% tariff on Canada’s aluminum and steel after Ontario agreed to temporarily suspend additional charges for electricity exports.
Trump and his aides reduced stock market turmoil as an economic transition period.
“I think this country is going to be a boom, but like I said, I can do it in an easy or difficult way,” Trump told reporters Tuesday.
“The hard way to do that is exactly what I do, but the results are 20 times bigger.”